Skip to main content
Options and Futures

Settlement Price

In the world of finance, the settlement price holds great significance. It is the final price at which a commodity is traded on a particular day. This price is determined by the exchange clearinghouse, and it plays a crucial role in determining a firm's net gains or losses, margin requirements, and the following day's price limits for futures and options contracts. In case of a range of closing prices, the settlement price is calculated by taking an average. This term is also known as settle or closing price.

Related terms

IDEM Membership (CBOT)

Understand the meaning and definition of IDEM Membership (CBOT) in the context of stock market, trading, and investments.

MORE
First Notice Day

Understand the meaning and definition of First Notice Day in the context of stock market, trading, and investments.

MORE
Performance Bond Call

Understand the meaning and definition of Performance Bond Call in the context of stock market, trading, and investments.

MORE
Supply, Law of

Understand the meaning and definition of Supply, Law of in the context of stock market, trading, and investments.

MORE
Variable Limit

Understand the meaning and definition of Variable Limit in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.5 Cr+ happy customers
+91